ColdSpring

Asset Management

Overview | Asset Management | Development

In a period of low inflation with generally lower rental growth rates ColdSpring believes that a policy of active Asset Management is essential to enhance returns. The company will identify specific areas of the market in locations it considers likely to benefit from out-performance in rental and/or an increase in capital value. The company will identify these areas by research and knowledge of local markets. Once ColdSpring has identified a specific sector, it will seek opportunities within that sector on or off market that have scope to create extra value.

Examples of potential creation of value are:

• Negotiating with tenants to restructure leases;
• Improvement of tenant mix;
• Refurbishment of void space for let;
• Rent Review increases;
• Negotiating to combine freehold and leasehold interests to release additional value;
• Developing and refurbishing properties for letting

Whilst the above points identify value creation, in today's market the fundamental issue for property is maximising your income stream. The day to day focus will therefore be on the following aspects:-

1. Maximise Lettings - ColdSpring believes it is essential to work with tenants in order to maximise the project income.

2. Tenant Retention - All effort must be employed to persuade tenants to remain in the building rather than break or relocate at expiry.

3. Reduce Non-Recoverables - A pro-active policy will be pursued to ensure irrecoverables are kept at a minimum level through minimising non-essential capital expenditure, introducing temporary lets and adding supplemental income.

4. Rent Collection - With tenants under financial pressure it is imperative rent and service charges are collected timeously.